Ryanair Triples 2014 Ad Budget and Prepares for Launch of New Website
Ryanair is gearing to turn the tides on dropping profits and better communicate their recent customer service changes with the tripling of their 2014 advertising budget to £30m and a shift in marketing strategy from price to brand focus for upcoming campaigns.
Michael O'Leary, Ryanair CEO, commented in an interview yesterday (February 3): "Historically we have gone out with cheap price adverts but we have won the argument on pricing. We are looking to do a TV ad to support the launch of the new website that will be more brand-led."
He added: "We've always been nice to people by not charging disproportionately high prices. But in our old model we'd have said 'if you don't like it b***r off'. Now instead we'll offer them the chance to book seating, to be first off the plane, to get fast-tracked through security... Just like Ikea, Lidl and Aldi came in on the back of price but are now advertising quality, we're doing the same thing. We want people to like flying with us not just for the savings but also because they like us."
Nevertheless, Ryanair has recorded a £28.7million loss in the last three months of 2013, their worst performance for the third quarter since 2008. O'Leary has blamed the profit loss on lower than average fares and the weaker sterling.